All property types in GTA remain over half-a-million dollars
Despite the doom and gloom housing market headlines, there has yet to be any price crash in Toronto. Although certain market segments have softened from their peak in early 2017– detached housing prices in particular remain higher than they were in 2016 and unaffordable for most.
Across the Greater Toronto Area, all property types had an average selling price over half-a-million dollars in May 2018, reports the Toronto Real Estate Board (TREB).
“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth,” says Jason Mercer, TREB director of market analysis.
Prices are likely to rise across all property types in the upcoming months, as new listings have shrunk. Without new listings, inventory is likely to tighten. If demand remains high, it may lead to bidding wars, buyers moving faster on purchasing decisions and higher prices.
Detached houses are down 8.2 per cent to about $1,046,000, a lower rate of decline than was reported previous in February, March and April. Semi-detached and townhomes are mostly stable at $816,000 and $641,000 respectively. Condos, as was the case the entire first quarter of 2018, are the sole market type to show price growth, and are up 5.7 per cent to $563,000.
The condo market, however, in the 416 and the 905, differ considerably. Condos for sale in Toronto go for over $600, 000 while in the 905 they go for $455, 000 — the singular property type and place where it is still possible to buy an average property for less than $500, 000. Condos for sale in Mississauga, a commuting distance to Toronto and with a strong job market of its own, remain a “bargain” at an average of $435, 000. The only place cheaper to buy condos in the GTA are in the eastern or northern areas. In Durham Region they range from $350, 000-$450, 000, while in Simcoe County, they go for about $350, 000, but the supply is extremely low — only 54 condos were sold this May in both regions combined.
Check out the infographic below for details:
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Writer: Danielle Kubes
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